New US buffer triggers fresh focus on CCAR transparency

Banks fear capital volatility and may also push for changes to US G-Sib surcharge

Federal Reserve - autumn_credit Fed Reserve.jpg
Federal Reserve: SCB would integrate CCAR results into Pillar 1 capital requirements measured as proportion of RWAs
Federal Reserve

Banks are likely to use the debate around the US Federal Reserve’s new stress capital buffer (SCB) to urge more transparency on stress-test scenarios, as well as seeking redress for alleged US gold-plating of global standards.

The period for public comment on the SCB closes on June 25 – the same week as the Fed releases the results of its 2018 Comprehensive Capital Analysis and Review stress-testing exercises. If enacted, the SCB would integrate the CCAR results into Pillar 1 capital

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